Legal Question in Bankruptcy in Illinois

Can attorney help arrange payments WITHOUT bankruptcy?

I do NOT wish to file bankruptcy. I want to resume paying my debt, but I need time to find a full-time job and reestablish consistent income. Current income is insufficient and I cannot keep my word when making arrangements with these collection attorneys and debt collectors.

OPTION 1

Can an attorney to negotiate with the collection attorneys and collectors to:

1.) Allow grace of 60-90 days with no collection activity and no lawsuit proceedings

2.) After 90 days begin a payment plan agreed by all parties.

OPTION 2

Can you suggest a credit counseling service that will make arrangements with my debtors, including the collection attorneys, so that I can pay them each myself?

SYNOPSIS

I was self-employed but was not creating an income in the last year. While attempting to salvage my business, I was dependent on credit cards and a relative to pay bills. However when the relative became unemployed herself, I abandoned the salvaging attempt and began to seek full-time employment.

16,000 Credit Cards

3,000 medical

1,500 taxes

= $21,500 total debt

My regular bills excluding the debt above total $1500 per month; current income averages $800


Asked on 11/22/07, 5:25 pm

1 Answer from Attorneys
Joseph Michelotti Michelotti & Associates, Ltd.

Re: Can attorney help arrange payments WITHOUT bankruptcy?

Why not do nothing. If you stop paying it will take them a least 4 months to get you into court. Once you are in court the loans are written off, and they are easy to negotiate down into reasonable payments.

If your employment prospects are better at that time you should have no problem building your credit back up.

If not then you can file bankruptcy.

Credit counseling is very costly and usually not successful.

email me if you have any questions

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Answered on 11/22/07, 11:14 pm


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